On December 24, 2024, TCI Express Limited (Scrip Code: 540212, Scrip Symbol: TCIEXP) made a significant disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company informed the BSE and NSE about receiving a GST demand order issued by the Additional Commissioner of Central Goods and Service Tax, Gurugram Commissionerate for the period between FY 2017-18 and 2021-22. The demand order, under Section 74(1) of the Central Goods and Services Tax Act, 2017 (CGST Act), amounts to ₹51,36,02,450 (including interest and penalties).

The demand relates to an interpretation discrepancy in the provisions of the GST Act, 2017. The company believes that the demand is based on an incorrect application of Section 74 (which covers suppression of facts) instead of Section 73 (which deals with other types of non-compliance). The company is confident that the demand is untenable under the law and will be challenging it.

Key Points of the Order

• The GST demand is for ₹51.36 crore, which includes tax, interest, and penalty, issued for the period FY 2017-18 to 2021-22.
• The Additional Commissioner issued the order under Section 74(1) of the CGST Act, 2017, and corresponding provisions of the Haryana GST Act, 2017.
• The Company has received the order on December 23, 2024, and is preparing to appeal against it, citing legal counsel and judicial precedents that suggest the claim is untenable.
• The company believes that the interpretation of GST provisions by the authorities is incorrect, and it does not foresee any financial or operational impact from this demand.
• TCI Express has expressed its commitment to file an appeal before the appropriate appellate authority and will update the Stock Exchanges on any further material developments in the case.

Legal and Financial Implications

The company's position is that the demand order is based on a misinterpretation of the GST Act, and they are prepared to contest it in the legal framework. TCI Express argues that the notice should have been issued under Section 73 rather than Section 74, as there was no suppression of facts. With the support of legal and tax counsel, the company has strong grounds to believe that the demand will not hold in court.

The potential monetary impact of this demand is limited, as TCI Express does not foresee the demand resulting in any financial loss. The company is taking all necessary legal steps to resolve the issue and ensure it does not affect its operations.

Commitment to Transparency

This disclosure is in line with the company’s commitment to transparency and compliance with SEBI regulations. The company is also ensuring that investors and shareholders are kept informed of all material developments, especially in matters related to taxation and legal challenges.

The appeal process will continue in the coming months, and the company has assured that it will keep the stock exchanges updated with any progress. This approach reinforces the company's reputation for responsible governance and adherence to legal frameworks.

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